Legislators firm on amusement tax

Carbon County commissioners rap lawmakers for repealing levy on ski areas. They say law may require homeowners to pay more.

October 25, 2002|By Bob Laylo Of The Morning Call

Three state lawmakers said Thursday they were looking to even the tax system and bolster the tourism industry when they supported a measure that eliminates amusement tax on ski areas and limits it on two area racetracks.

State Rep. Kelley Lewis, along with state Sens. Lisa Boscola and Ray Musto, explained their vote after Carbon County commissioners again complained about the legislation and singled them out for criticism.

The commissioners complained that Boscola and Lewis have pushed for property tax reform, yet voted for legislation that may force two Carbon County school districts and one municipality to raise property taxes.

Kidder Township, home to Jack Frost and Big Boulder ski areas, expected $80,000 in amusement tax this year. Weatherly Area School District expected $50,000, and Jim Thorpe School District budgeted $25,000.

Lewis, R-Monroe, said not all municipalities and schools have ski areas and racetracks to pay an amusement tax, and some were prohibited from enacting it.

"I'm not for these little pockets of windfalls and loopholes across the Pennsylvania tax code," Lewis said.

He said the system is still inequitable because two ski areas, Montage in Scranton and Camelback in Tannersville, don't pay property taxes. Lackawanna County owns Montage, and Camelback leases land from the state.

Lewis said he supports a hotel and sales tax, which he would use for education to reduce school property taxes.

He also said he wanted to help employers. He pointed out that NASCAR and International Speedway Corp. propose to build a racetrack at the Meadowlands in New Jersey, and that could cost Pocono Raceway one or both of the races it holds.

The measure reduced the amusement tax at Pocono and Nazareth 60 percent.

It saved Pocono about $180,000 and Nazareth about $60,000.

Some have said the measure may force a property tax increase, but Boscola said that doesn't have to be the case.

"All government bodies have to make tough decisions these days," said Boscola, a Democrat representing Lehigh, Monroe and Northampton counties. "They'll have to look and see what they want to cut."

Like Lewis, Boscola said she wants to help the tourism industry.

"These places are job creators and I have always been supportive of lower taxes for businesses and individuals," she said.

But the legislation still has Carbon County officials upset.

Commissioner Tom Gerhard promised to bring up the issue every time Musto, a Democrat whose district includes Kidder Township and the two school districts, runs for office.

Musto is on the ballot this year, but does not have opposition.

Musto said he voted for the bill because of arguments that tourism is the state's second-largest industry and needs help to continue attracting people.

"The operators assured us they would plow back savings into improvements at their businesses," he said.

Musto said the arguments in favor of the repeal were strong, and he didn't hear from opponents, including the commissioners, before the vote. He said that could have swayed his vote.

"It's not my intention to put any taxing body, particularly in my district, at a disadvantage," he said.

The legislation, signed into law this month by Gov. Mark Schweiker, originated in Northumberland County, where rides at Knoebel's Amusement Resort were taxed as permanent buildings.

The Elysburg park complained and state Rep. Merle Phillips introduced legislation prohibiting rides from being taxed as real estate.

The legislation was amended by state Sen. Robert Mellow to include ski areas.